Unpublished letter to Mail & Guardian - Zulu's department should not get more money until it proves it can use if effectively

I sent this letter to Mail & Guardian on Monday and was disappointed to see they did not publish it in today's edition.

Dear Sir

Minister of Small Business Development Lindiwe Zulu laments her department is under-funded (Zulu laments inadequate budget, M&G 3 Feb). 

It is true the Department receives a very small proportion of total government spending. The 2016/17 national expenditure ceiling was R1,15 trillion of which R1,3 billion went to the Department - a paltry 0,1%. This is roughly 114 times less than the Department of Social Development receives, mainly to pay out monthly grants to 17 million recipients. 

Letter in Business Day: Zulu should gun for unity

Today's Business Day published an edited version of this letter I sent them after listening, appalled, to Lindiwe Zulu's speech in Parliament on Wednesday.

Sir

In her speech during the SONA debate on Wednesday Minister of Small Business Development Lindiwe Zulu said government would use its annual R500 billion procurement expenditure like the AK 47s used by Operation Vula soldiers in the armed struggle. 

As a former MK operative, Minister Zulu knows the destructive power of the AK 47 killing machine. To compare its procurement budget to this weapon is to imply that somewhere out there is an enemy to be destroyed in the march to economic liberation. 

The sub-text is clear: the enemy is so-called "white monopoly capital".

EU Ambassador and delegation visit the Soweto Equestrian Centre

The following news story appeared in today's edition of the Jabavu Urban News, 9th February 2017. 

The Soweto Equestrian Centre in Rockville hosted a delegation of senior diplomats from the European Union on Friday 3rd February, led by Ambassador Marcus Cornaro. 

The Equestrian Centre was established in 2007 by the legendary South African show jumper Mr Enos Mafokate. Mr Mafokate believed it was important to bring horse riding to the township, so that it was no longer seen as a sport for the privileged few, mainly white riders.

Mr Mafokate's business partner, Sthembiso Mhlongo, arranged the EU delegation's visit after meeting the Ambassador at a function recently. The purpose of the visit was the aquaint the diplomats with an aspect of Soweto which is less well known than the traditional tourism destinations of Vilakazi St and the Hector Pieterson Museum.

The Business Warm-Up, Soweto Theatre, Jabulani - 26th January

It's been nearly two months since my last blog post. You could be forgiven for thinking I've been doing nothing, rather just lounging around over an extended holiday period. Nothing of the sort!

Apart from a two week break in Plettenberg Bay over Christmas and new year, I've been working on some long term issues and projects, and initiating some new ones.

It's amazing how our newly acquired status as the governing party in Joburg has transformed the image of the DA amongst the people I am speaking to. We can now DO something about all the ills that we see around us, not just talk about them and blame the ANC.

So whether it's issues in my constituency around corruption, service delivery, jobs and housing, or portfolio-related matters concerning small businesses, there is a renewed sense that under a DA government people's lives can change for the better.

Letter to the DG Public Service Commission re Dr Mazwai conflict of interest

29th November 2016 

Public Service Commission

Director-General:

Dr Dovhani Mamphiswana

RE: Request to investigate conflict of interest

Dear Dr Mamphiswana

In replies to our DA Parliamentary Questions, the Minister of Small Business, Lindiwe Zulu, revealed that she allowed her department to pay R22 million to Mtiya Dynamics, a company in which her department advisor, Dr Thami Mazwai, owns 40% of the shares.

Oral question in the House to Minister Zulu - what will you do about Dr Mazwai's conflict of interest?

Yesterday I asked a question in the House during the Oral Questions session for Economics Cluster 5 which includes the Minister of Small Business Development, Lindiwe Zulu.

"Minister, a number of companies your department supported in the Eastern Cape are beneficiaries under the National Gazelles Programme.

The programme is managed by a private company, Mtiya Dynamics, to which your department paid R22 million rand in the current financial year.

I now discover that your special advisor, Dr Thami Mazwai, who devised the Gazelles Programme, owns 40% of the shares in Mtiya Dynamics.

Media statement: Minister Zulu’s advisor receives over R22 million in contracts

Minister Zulu’s advisor receives over R22 million in contracts

by Toby Chance - DA Shadow Minister of Small Business Development

Date: 08 November 2016

Release: Immediate

Type: Press Statement

Successive replies to DA Parliamentary Questions have revealed that Minister of Small Business Development, Lindiwe Zulu, allowed her department to pay R22 million to Mtiya Dynamics, a company in which her advisor, Dr Thami Mazwai, owns 40% of the shares. I will write to Minister Zulu to request that she either terminate Dr Mazwai's contract with immediate effect or instruct Dr Mazwai to dispose of his shares immediately. Failing this immediate action, the DA will write to the Auditor General, Kimi Makwetu, to request that he investigate these activities. Furthermore, I will submit parliamentary questions on whether or not Dr Mazwai has received any material benefit from fees or dividends paid by Mtiya Dynamics. The reply lists the following amounts totalling R22,085,000 that was paid to Mtiya Dynamics: • R2,910,150 on programme set up costs • R2,355,738 on call for applications & adjudications • R683, 234 on promotion, marketing and branding • R2,848,965 as a management fee • R1,723,573 on inductions, capacitation and business report • R948,302 on research and development • R1,629,350 on project admin costs • R1,930,000 Third trance expenses • R3,500,000 for capacitation costs • R463,785 project costs • R3,091,900 VAT Mtiya Dynamics, under Dr Mazwai's direction, developed what is now called the National Gazelles Programme and sold it to the DTI. After the formation of the Department of Small Business Development in 2014, the programme was transferred to it from the DTI. Last year Dr Mazwai joined the Department of Small Business Development on what is no doubt a lucrative contract, shortly after his company Mtiya Dynamics was given the contract to manage the National Gazelles Programme. Government employees in DA-controlled departments, metros and municipalities are barred from doing business with the state. Minister Zulu must demonstrate a similar level of probity in the management of her department.

Media Enquiries

Toby Chance DA Shadow Minister of Small Business Development 083 251 5613   Luvuyo Ndlangisa Press Officer 061 738 0812